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April 12, 2012

Why are we still selling 1, 3, and 6 month memberships

I remember when I was a manager at a local health club about 10 years ago we sold the usual 1, 3, and 6 month memberships. This was before the now popular month-to-month option was widely available.

If my memory serves me 1 and 3 month memberships made up about 15% of total membership sales, and 6 month memberships made up about 25% of total membership sales.

So roughly 40% of total membership sales were less than 12 months.

Now who buys a 1, 3, or 6 month membership?

Someone who only wants to be fit and healthy for a few months… no.

Someone who is only in town for a few months… maybe some but generally, no.

Someone who only has a few months to live... no, that doesn't sound right either.

Someone who wants to try the club but doesn’t want to commit to a longer term/financial commitment… oh yeah.

Most people who aren’t willing to pay for a 12 month membership (EFT or upfront) are using a lesser term membership as a trial… now that shouldn’t be news to anyone.

Here’s my point… typical 1, 3, and 6 month memberships aren’t very good trial memberships. They don’t overcome any of the prospective new member’s barriers and they don’t move them up the expertise curve.